Export to HQ DVD very poor quality

Hi all,
I've been trying to export to an HQ DVD, meaning I've chosen the highest settings, ending up with a 5552Mb File for 75 mn... which I believe would be enough to have a very high "normal"definition .
ok I know it wouldn't fit but I burned 10mn of timeline with these settings, to check, and the quality is very poor. I believe as bad as a VHS second generation copy... My titles appear like a very low photoshop jpg compression, and all lignes and shapes are surrounded by some kind of compression artefacts not acceptable even in normal def. (not mentioning the interlaced lines at the edit point when the clip has been altered in size or color etc...) You get the picture...
I had a look at the calculator, that is not much help finally when exporting from premiere.
What I want to do is export my (xdcam hd 50mbps 1080 50i).mxf timeline to a beatiful dvd that everybody can play....
Should I go for a third party encoder?
Also, It seems that when I export and burn through Encore, I get a slightly vertically stretched frame, that ellipses the perfect circles I have on the timeline. Although I respect the pixel ratio of 1.0, 16.9 screen... wide screen etc... I always get this stretching. (Playing the file from the pc is correct.)
What puzzles me is to see some nice SD DVDs around, burnt from HD files and I'm not able to get at least the same results from a broadcast approved camcorder and premiere CS6.
Export settings are:
Help please... Thanks.

Glad to help.
I have been using Encore every since it was first released and on many occasions I have pruduced MPG files encoded at different rates so that I can demonstrate to the audience at my presentations how the different settings can affect the end MPG movie
With Encore I have found that the settings I gave you earlier give the best compromise results, in my tests having the max setting at its max position and the target above eight can produce flawed mpeg files. this is not as a resullt of one off encoding but I have repeated it with each version of Encore with varying results, certainly using Encore in my CS5.5 Suite produces softer DVD's than earlier versions, in my opinion that is..
With HD source my Panasonic HMC 150 Encore produces reasonable MPG SD files but the Canon 7 D produces more artifacts.
Enough of a remeniss and ramble, good luck
Addiitonally with the completed DVD there is a distinct difference depending upon which DVD player is used, using the same DVD my Sony 3D bluray player upscales better than my Panasonic Bluray recorder, whereas at a club I go to the Pioneer AV amp upscales the DVD even better, therefore I would conclude that the device playing back the DVD can have a vast effect on what you see.

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